Our Finances

Wellmont Health System’s wise use of resources, combined with its delivery of superior health care for the region, enabled the organization to post solid financial results in fiscal year 2015.

As we continue the transition to value-based payments, while also facing the challenge of increasingly prevalent high-deductible plans in our area, the total number of patients in beds was up 1.2 percent for the year. While emergency room visits were up 4.7 percent, surgeries were down 2.3 percent and deliveries up 1.6 percent. Outpatient volumes were also up, especially due to the expansion of infusion centers and Wellmont Urgent Care.

Net patient revenue increased $47.7 million, largely due to acquisitions of Wexford House in December 2013 and the Holston Valley Imaging Center in March 2014, as well as the increase in outpatient volumes. Other revenue decreased $7.7 million from Electronic Health Record Meaningful Use amounts being $4 million lower than prior years, blood bank revenue reductions of $1.7 million and a $3 million decrease from the prior investment in the Holston Valley Imaging Center, now consolidated in each line of the statement of operations.

Operating expenses increased $38.2 million, primarily driven by the aforementioned acquisitions, expansion of infusion centers and Wellmont Urgent Care and increased depreciation from the Epic system going live in April 2014.

Income from operations of $6.7 million and net income of $15.4 million were above the prior fiscal year.

The only significant changes in the balance sheet were the sale of Wellmont’s 60 percent interest in Takoma Regional Hospital, which resulted in an $11.7 million cash gain. In addition, days cash on hand decreased by two days, and the debt-to-capitalization ratio and debt service coverage ratio both improved slightly.